What to financially expect when you’re expecting

It’s one of the best moments in your life – having your first child. You’ll receive help from family and friends at baby showers with some of the big expenses such as furniture, baby equipment, and newborn clothes. Though this may ease some of the financial burden, it’s the ongoing costs of diapers, food and more that keep on coming.

With a new baby, you’ll have to accommodate your finances, replacing old ways of spending with new ones. Here’s how you can step up now to prepare your financial lifestyle for a new bundle of joy.

• Health insurance and anticipated costs: Forecast your health insurance and medical costs early in the pregnancy including prenatal care, labor and delivery, and the medical bills that follow.
• Maternity/paternity leave: Your time off work may impact your finances later down the road. To get a better understanding of how your maternity leave will affect your finances, review your company’s policies, and state laws.
• Pre-baby budget: Adjust your budget to allow for out-of-pocket medical costs, maternity leave finances, and a shopping list of baby supplies. You’ll have plenty of expenses so limit your necessary and optional purchases. You may consider buying used to help with your budget.
• Post-delivery budget: Plan for recurring purchases such as diapers, childcare, and food.
• Pediatrician in your insurance network: Choose the right pediatrician for your baby. You may ask for recommendations from friends and family or call clinics and ask to interview a pediatrician. Make sure the pediatrician is in your health insurance network, so you’re not hit with unexpected out-of-network costs.
• Emergency fund: If you’ve started an emergency fund, that’s fantastic. Keep adding money to your rainy-day fund. If you haven’t started a fund, now is the time to start. You never know when an emergency will come up with your child. It’s important to have at least three to six months’ worth of living expenses covered in your emergency fund.
• Birth certificate and Social Security card: You will receive the necessary paperwork to complete your child’s Social Security number and birth certificate.
• Add child to health insurance: According to the U.S. Department of Labor, you have within 30 days from your child’s birth date to add him or her to your health insurance. Make sure to take care of this as soon as possible, so you’re not caught off-guard.
• Life insurance policy: Plan to set up a life insurance policy for your child to help with the unexpected. Rates may be low and can help cover funeral costs and more.
• Childcare: Make sure to have a childcare plan in place before your maternity leave ends. Visit day care centers or interview nannies.
• Update beneficiaries: You may want to add your child as a beneficiary on your life insurance, 401(k) and IRAs. Make sure to adjust to ensure when and how your child will have access to the funds.
• Disability insurance: Make sure to choose the right amount of coverage to meet your expenses if you’re out of work. Keep in mind that expenses have gone up after adding a baby to the family.
• Your will: The will is part of estate planning, so begin by designating a guardian for your child. You’ll need to ensure your child is in good hands if one or both parents pass away.
• Retirement funding: Keep adding money to your retirement fund so your child doesn’t have to support you.
• The child’s education: Start saving early for college. For instance, you could put money into a 529 college education savings plan.

Open an Adirondack Bank Children’s Savings Account

If you’re looking to start saving early for your newborn, Adirondack Bank has a Children’s Savings Account with a required low minimum balance of $10. This interest-bearing account also features eStatements, online banking, and direct deposit. For more details, contact your nearest branch.

The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.